Dena Bank is planning to open 22 new branches across India in current financial year. Out of these, four branches will come up in Gujarat, including three branches in Ahmedabad and one in Surat. In addition, the bank will increase advances by 45% in Gujarat in FY 08-09.
Dena bank's total advances stood at Rs 23,381 crore in March, which it plans to increase by 22% in the current financial year to be around Rs 28,525 crore.
Out of this, the bank will give 20% in retail, 17% SME and 14.5% in agriculture sector, said chairman and managing director of Dena Bank, PL Gairola. "We are also into micro advances but right now the proportion is not fixed."
Dena Bank's core banking project is going full throttle. It is investing Rs 304 crore for bringing all branches under core banking. In this year, bank will diverted 400 branches under the project to be completed in 2010.
In FY 08, the bank's total advances were Rs 4,568 crore in Gujarat, which the bank intends to increase by 45%, said general manager of Dena Bank, TR Chawla.
"Bank will put in Rs 1,580 crore in indirect agriculture loan, Rs 340 crore for direct agriculture loan and Rs 637 crore for SME industries in Gujarat."
In other priority sector, like education, bank will put in Rs 1050 crore in Gujarat.
Dena Bank is collaborating with Gujarat Green Revolution Co Ltd for drip irrigation and has signed an MoU with Microfinance Saving Support Foundation for introducing 'Zero Balance Accounts'.
The bank is planning to tie-up with postal department in Gujarat to cover more customer, said Gairola. The pilot for the same is already on in Maharashtra's Appola and Amravarti districts.
In financial year 2007-08, the bank's total deposits were Rs 33,943 crore, up 22.58% over the previous year. Net profit increased by 78.50% to touch Rs 359.79 crore, while net NPA ratio was down by 105 points to be at 0.94%.